The level of disclosure in respect of unconsolidated structured entities will depend on the facts and circumstances of the entity but is likely to be more complex for a bank or other financial institution.
Disclosures will be in table forms specifying the following attributes [IFRS 12 26]:
Type of structured entity
Nature and purpose
Interest held by the reporting entity
Securitisation vehicles for loans and advances
These vehicles are financed through the issue of notes to investors through stock exchanges.
Investments in notes issued by the vehicles
Fees for loan servicing
To generate fees from managing assets on behalf of third-party investors.
These vehicles are financed through the issue of units to investors.
Investments in units issued by the fund
The following table sets out an analysis of the carrying amounts of interests held by the reporting entity in unconsolidated structured entities. The maximum exposure to loss is the carrying amount of the assets held. [IFRS 12 29]
Carrying amount of assets held
During the year ended 31 December 2018, the reporting entity provided financial support of €10 million to an unconsolidated securitisation vehicle to enable it to make payments to the holders of the notes issued by the vehicle. Although it is under no contractual obligation to do so, the reporting entity decided to provide this support after careful consideration of its role in the set-up of the vehicle and its reputation in providing such services. The support was provided to assist the entity in managing its short-term liquidity. [IFRS 12 30]
The reporting entity considers itself a sponsor of a structured entity when it facilitates the establishment of the structured entity. The following table sets out information in respect of structured entities that the reporting entity sponsors, but in which the reporting entity does not have an interest. [IFRS 12 27]